Skilled workforce key to Islamic finance growth in Bangladesh: Experts

Bangladesh must strengthen governance, ensure the proper application of Shariah principles, and develop skilled and ethically responsible professionals to expand its Islamic finance, banking, and insurance sectors, experts said at a seminar.

Eastern University organised the seminar, titled "Prospects, Challenges and Future of Islamic Finance, Banking and Insurance in Bangladesh", on Saturday (8 August), with support from Zenith Islami Life Insurance PLC, according to a press release.

Eastern University Vice-Chancellor Professor Dr Farid Ahmad Sobhani chaired the event, where speakers discussed the current state, opportunities, challenges, and future priorities of the sectors.

Al-Arafah Islami Bank PLC Director and Eastern University Board of Trustees Member Engineer Khandaker Mesbah Uddin Ahmed attended the seminar as chief guest.

University of Manchester Department of Economics Associate Professor Dr M Imranul Haque addressed the event as guest of honour, while Professor Dr Tarek Muhammad Shamsul Arefin of the Department of Economics, Jagannath University, delivered the keynote address.

Eastern University Registrar Dr Abul Bashar Khan, who moderated the seminar, delivered the welcome address.

Eastern University Treasurer, Professor Md Shamsul Huda, and Dean of the Department of Business Administration, Professor Brigadier General AKM Iqbal Azim, also spoke at the event.

Other speakers included AB Bank PLC Kakrail Islamic Banking Branch Senior Vice-President and Branch Manager Farid Ahmad Fakir; Trust Bank PLC Mirpur DOHS Branch Vice-President and Branch Manager Shah Abul Bashar; Trust Bank PLC Islamic Banking Division Vice-President and Manager Mohammad Shah Kamal; Zenith Islami Life Insurance PLC Vice-President and Head of Group and Health Insurance Md Anwar Hossain Sarker; Zenith Islami Life Insurance PLC Senior Executive Vice-President (HR) and Company Secretary Abdur Rahman; Manarat International University Department of Economics Associate Professor Dr Mohammad Mizanur Rahman; and UCB Ashulia Branch Executive Officer and Operations Manager Mohammad Ferdous Ahmed.

Several other professionals from the banking, finance and insurance sectors also took part in the discussion.

Speakers identified the shortage of skilled and trained professionals as one of the major challenges facing Bangladesh's Islamic banking sector.

They said the number of professionals with formal education and specialised training in Islamic banking and finance remained comparatively low, making it difficult for institutions to recruit suitably skilled and experienced people.

The shortage could be addressed by expanding teaching and research opportunities in Islamic banking, Islamic finance, Shariah-based banking and insurance at universities, they observed.

Speakers said Islamic banking was founded on Shariah principles, ethics, integrity and trustworthiness.

They stressed the need to develop professionals with banking and financial expertise and a thorough understanding of the fundamental principles and values of the Islamic economic system.

They also emphasised the proper adherence to and implementation of Shariah principles in Islamic banking operations.

The development of ethical and responsible professionals for the Islamic banking sector also received particular attention at the seminar.

Speakers said bankers required personal integrity, ethical values, and a sense of responsibility in addition to professional competence.

They observed that it would be difficult to operate an ethical, Shariah-based financial system if individuals involved in loan defaults, drug abuse, or other unethical activities were involved.

They therefore called for greater emphasis on developing honest, ethical, and responsible professionals, alongside technical competence.

The speakers noted that Islamic banking was not a system exclusively for Muslims. Its services and financial benefits are open to people of all faiths and backgrounds, and non-Muslim customers may also use Islamic banks' services.

They stressed the importance of extending the ethical and economic benefits of Islamic banking to a broader section of the population.

Speakers said expanding Islamic banking and finance in the national economy would require skilled human resources, increased research, proper implementation of Shariah principles, good governance, greater use of technology, and effective collaboration between universities and financial institutions.

The seminar also discussed the potential of Islamic insurance, or takaful.

Speakers said Bangladesh's growing economy and changing financial needs created opportunities to introduce new products and services in Islamic finance, banking, and insurance, bringing more people into economic activities.

Eastern University teachers and students, banking and financial-sector professionals, and invited guests attended the event. They exchanged views on the present state, prospects, challenges, and future direction of Islamic finance, banking, and insurance in Bangladesh.

Eastern University's Centre for Islamic Finance, Banking and Insurance organised the seminar with the support of Zenith Islami Life Insurance PLC.